IRS Recovers $1.3 Billion in Unpaid Taxes from Wealthy Americans

The U.S. Treasury and IRS have recovered $1.3 billion from wealthy individuals through new enforcement initiatives funded by $60 billion in modernization spending from the Inflation Reduction Act. Despite Republican opposition, these initiatives aim to target non-filing and high-income individuals with significant tax debts.

The U.S. Treasury and the Internal Revenue Service announced on Friday the recovery of $1.3 billion in unpaid taxes from wealthy individuals. This achievement stems from new enforcement initiatives funded by $60 billion allocated for IRS modernization under the climate-focused Inflation Reduction Act.

Republicans in Congress have consistently opposed the 10-year IRS funding passed in 2022, arguing it would unduly harass taxpayers. Republican presidential candidate Donald Trump has pledged to repeal the unused funds from the act, which include billions earmarked for the IRS. The agency plans to use $10.6 billion by the end of the 2024 fiscal year, leaving nearly $50 billion at risk of being rescinded.

According to budget experts, cutting these funds would increase the federal deficit by over $100 billion over a decade due to reduced tax enforcement. In the first six months of the initiative targeting 125,000 wealthy non-filers since 2017, the IRS collected $172 million from 21,000 individuals. Another initiative targeting high-income individuals with significant tax debts has brought in $1.1 billion. Treasury Secretary Janet Yellen noted that audit rates for millionaires had dropped by 80% due to previous budget cuts, shifting the tax burden to ordinary Americans.

(With inputs from agencies.)